U1 AOS3/KK8: Competitor behaviour

Question 1

Competitive behaviour

Answer 1

how direct rivals of a business portage in the business environment. are factors that allow a company to produce goods or services for better or more cheaper then its rivals

Question 2

porters generic stratgergies

Answer 2

two possible ways for a business to gain a competitive advantage eg. differentiation and low cost strategy

Question 3

1. LOW COST STRATEGY

Answer 3

attempts to offer goods or Services its that are comparable to their competitors at a lower cost.

Eg. ▲ profits by ▼ costs while charging industry av prices

Question 4

2. DIFFERENTIATION

Answer 4

seeks to differentiate or distinguish itself from competitors through products and services it offers.

EG. adding value to new/existing products that isn’t offered by competitors

Question 5

SWOT define

Answer 5

tool to evaluate the companies competitive position

Question 6

SWOT (S)

Answer 6

Strengths : factors that are + in relation to competitors

Question 7

SWOT (W)

Answer 7

Weaknesses : factors there are - in relation to competitors

Question 8

SWOT (O)

Answer 8

Opportunities : factors in the external environment that can be beneficial to the organisation

Question 9

SWOT (T)

Answer 9

Threats : factors in environment that can be detrimental to organisations

Question 10

BENEFITS OF SWOT

Answer 10

• analyses the effectiveness of the companies operation
• shows the current and potential future position of a company

Question 11

LIMITATIONS OF SWOT

Answer 11

• w & s are often perception rather than fact
• open to interpretation

Question 12

how a business can generate a competitive advantage

Answer 12

PRICE = should be competitive and fair, offering good value for money
LOCATION = conveniently located
QUALITY = must be viewed as good quality by target
SELECTION = good selection/quality of products
SPEED = how readily available are the products
SERVICE = pre-sale/transaction